Cryptocurrency Market Faces Correction as Bitcoin Falls from $107K High

TLDR

• Bitcoin dropped to $102,941 after reaching a high of $107,114, falling below the $103,000 threshold
• $651 million worth of crypto positions were liquidated in 24 hours
• Ethereum fell 5.08%, making it one of the biggest losers among top cryptocurrencies
• Despite the drop, Bitcoin’s outlook remains bullish with potential targets of $118k and $135k
• Dogecoin was the only gainer among top ten cryptocurrencies, up 0.28%

Bitcoin experienced a market correction after hitting a new high of $107,114 on Sunday. The world’s largest cryptocurrency is now trading at $102,941, falling below the key $103,000 level.

This price action has pulled the entire crypto market down with it. The total crypto market capitalization dropped 2.7% to $3.36 trillion.

The sudden price swing led to massive liquidations. Data from CoinGlass shows $651 million worth of positions were liquidated over the past 24 hours as Bitcoin price moved between $107k and $102k.

From a technical perspective, Bitcoin swept last week’s high of $105,663 but met strong selling pressure. This caused BTC to drop 4.23% from its new high to a local bottom of $102,579.

Market analysts suggest the next support for Bitcoin lies near $101,500, while resistance remains at $105,000.

Altcoins Follow Bitcoin’s Lead

Ethereum, the second-largest cryptocurrency, was hit harder than Bitcoin. ETH fell 5.08% to $2,359.88, making it one of the day’s biggest losers among top cryptocurrencies.

Other major altcoins also followed the downward trend. XRP declined 1.44% to $2.33, Cardano dropped 3.21% to $0.7218, and TRON fell 4.01% to $0.2609.

BNB (Binance Coin) is down 1.20% to $636.03, despite its utility as an exchange token.

Dogecoin Bucks The Trend

Interestingly, Dogecoin was the only gainer among the top ten cryptocurrencies. DOGE is up 0.28% to $0.2174, showing some resilience amid the broader market decline.

This small positive move for Dogecoin reflects ongoing retail interest in the popular meme coin, even as traders reduce their exposure to other altcoins.

Stablecoins remained relatively unaffected by the market turbulence. Tether (USDT) held its peg at $1.00, with a trading volume of $96.49 billion.

Technical Indicators Still Positive

Despite the current dip, Bitcoin is on track to confirm a ‘golden cross’ in the coming days. This pattern occurs when the 50-day simple moving average crosses above the 200-day simple moving average.

The golden cross suggests that the short-term trend is outperforming the broader trend, with potential to evolve into a major bull run. A similar pattern appeared earlier in 2024 when Bitcoin jumped from $70,000 to $100,000.

Market experts warn that investors should be cautious about trying to “catch the falling knife” due to Bitcoin’s volatility dropping to a 10-month low.

The recent price movement has created a bearish engulfing candlestick, undoing Sunday’s 3.23% gain. Continued selling pressure could push Bitcoin down to $101,000, a key support level.

A breakdown below this level could see BTC trade lower, between $100,300 and $99,800, based on technical chart patterns.

However, the overall outlook for Bitcoin remains bullish. Analysts expect the cryptocurrency to slow down as it enters this support area, potentially setting the stage for the next all-time high targets of $118,000 and $135,000.

The crypto market’s current state reflects growing uncertainty. While Bitcoin struggles to hold above $103,000, the steeper declines in Ethereum and other altcoins suggest deepening caution among traders.

Bitcoin currently maintains a market capitalization of over $2.04 trillion, with daily trading volumes exceeding $58 billion.